EU deal is a milestone for China’s globalisation that can help build a new world economic order

Apart from promising European firms greater market access, the investment agreement promotes cooperation on the environment and will force China to reform parts of its economy that are not in line with international practices

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European Commission president Ursula von der Leyen and European Council president Charles Michel at a media conference at the conclusion of an EU-China summit, in video conference format, at the European Council in Brussels, on June 22, 2020. Photo: AP

Published: 1:30am, 7 Jan 2021Updated: 2:19am, 7 Jan 2021

After 35 rounds of negotiations, Beijing and Brussels announced the completion of the China-European Union Comprehensive Agreement on Investment negotiations in December. In a year full of uncertainty, the agreement reflects China’s determination to promote greater opening up of its economy and also gives impetus to global free trade and multilateralism.

The EU-China: A Strategic Outlook report, published by the European Commission in March 2019, notes that the two share common interests in multilateralism, sustainable development and coping with climate change.

The EU defines China as a “cooperative partner”, an “economic competitor” and a “systemic rival”. However, since its relationship with Beijing is fundamental to its long-term development, the EU seeks pragmatic ways to solve problems instead of confrontation.

From January to November last year, China-EU trade bucked the recession, rising about 3 per cent. China became the EU’s top trading partner for the first time. The EU was China’s top trading partner for 16 consecutive years before Brexit. These signs show cooperation rests on a solid foundation and has great potential.

People admire a new China-Europe goods train from Chengdu at the Vienna South Freight Centre in Austria on April 27, 2018. China became Europe’s top trading partner for the first time in 2020. Photo: Xinhua

Aligned with high-level international economic and trade rules, the EU-China agreement focuses on institutional openness. It covers areas far beyond traditional bilateral investment agreements, covering market access commitments, fair competition rules, sustainable development and dispute settlement.